Casas in Los Angeles, California, USA, on Sunday, July 13, 2025. As in the broader US market, housing sales have slowed down in southern California as high interest rates and the economic uncertainty of demand.
Eric Thayer | Bloomberg | Getty images
Housing sales previously owned in June fell 2.7% from May to 3.93 million units seasonally, according to the National Association of Real Estate Agents. Analysts were waiting for a fall of only 0.7%. Sales did not change since June 2024.
This report is based on closures, so the contracts that were probably signed in April and May, when the average rate of the fixed mortgage to 30 years increased above 7% several times and was never below 6.8%, according to Mortgage News Daily.
“The high mortgage rates are causing housing sales to remain trapped in cyclic minimums,” said Lawrence Yun, chief economist of Nar, in a statement. “If average mortgage rates reduce to 6%, our scenario analysis suggests that between 160,000 additional tenants become owners for the first time and a high sales activity of existing housing owners.”
Mortgage rates have not moved significantly in recent months, remaining stubbornly high amid concerns about the economy in general. The average rate is now 6.77%.
The supply continues to win, with 1.53 million units for sale at the end of June. That is an increase of 15.9% year after year and represents a 4.7 -month supply to the current sales rhythm. A six -month supply is considered balanced between the buyer and the seller, so the market is still thin.
The average price of a house sold in June was $ 435,300, 2% more after year and another higher record for the month of June. That is the 24th consecutive month of annual increases.
“Multiple years of non -commissioned officer are promoting the record price of housing. Housing construction continues to delay population growth. This is preventing housing buyers for the first time from entering the market,” said Yun, also pointing out that the average wealth of the owner increased by $ 140,900 in the last five years.
Sales continue to exceed the upper end of the market. Houses with a price of less than $ 100,000 fell 5% per year. Houses with a price of between $ 100,000 and $ 250,000 increased by 5%. And houses with a price greater than $ 1 million increased by 14%.
The houses spend more time in the market, to an average of 27 days compared to 22 days last June. High -end houses are sold faster than those that have a price of less than $ 500,000.
Buyers for the first time represented 30% of sales. Historically, this demographic group constitutes 40% of all buyers. The participation of everyone's agreements in cash remained high in 29% of sales. Sales prior to CO-COVID, in cash, represented approximately 20% of the market.
The listed houses received an average of 2.4 offers, slightly below 2.5 last month and 2.9 a year earlier.
